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In this paper, we propose a new peak power reduction method applicable to OFDMA systems for broadband wireless communications, in which a user uses some frequency bands in all system bands, by using iterative peak reduction. The proposed method separates the system bands into an information signal band and peak-reduction signal insertion bands, and generates peak-reduction signals in the peak-reduction signal insertion bands by using iterative signal processing. Moreover, low power peak-reduction signals are generated in the information signal band to improve peak-reduction performance. The results by computer simulations show that the proposed method can achieve the PAPR reduction of 3 to 4dB with almost no degradation of BER performance.